O
Once Bitten
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I read elsewhere that mortgage interest for an investment property can only be offset against rental income where the mortgage was used to purchase or renovate the property.
In my case, I am looking to buy new PPR and use current PPR as investment. In doing so, I need to refinance PPR. Current morgage is 120k. Looking to refinance up to 200k (value = 250k). By refinancing like this, am I eliminating ability to offset the interest payments altogether, or can I offset the interest on the original 120k out of the now 200k mortgage ?
In my case, I am looking to buy new PPR and use current PPR as investment. In doing so, I need to refinance PPR. Current morgage is 120k. Looking to refinance up to 200k (value = 250k). By refinancing like this, am I eliminating ability to offset the interest payments altogether, or can I offset the interest on the original 120k out of the now 200k mortgage ?